Bitwave, a leading provider of digital asset tax and accounting software for enterprises, has today announced support for Layer 2 (“L2”) solutions and the Optimism protocol on its platform so businesses now have the ability to track high volumes of transactions for accounting and tax purposes
As congestion on the Ethereum network persists, the addition of L2 solutions is already leading to lower fees and faster transaction confirmation times. With Bitwave’s new support for these protocols, businesses can begin to take full advantage of the benefits without worrying about the risks to properly account for and track taxes on these assets. Bitwave also helps with the often conflicting advice of tax professionals, allowing complex and customizable tax treatments - for instance, allowing customers to treat L1 to L2 token transfers as either a simple transfer or a taxable trade.
“L2s present a unique opportunity for reducing friction among enterprises looking to adopt digital assets by lowering gas fees and speeding up transactions - however, it also presents a new set of unique challenges,” said Pat White, co-founder and CEO of Bitwave. “As the number of transactions increases, the complexity of tracking them from an accounting perspective explodes, and the difficulty in handling the high volume of tax lots also rises. Bitwave makes it easy to bridge the gap from blockchains, including L2s, into your accounting and tax processes.”
As of today, adding Optimism to your Bitwave instance is a single click, and as simple as any other blockchain. With minimal additional configuration, the solution can be configured for roll-up reporting either into Bitwave or into your general ledger solution.
As one of the leading L2 solutions, Optimism will be using Bitwave to monitor a large number of transactions on a daily basis for revenue and accounting purposes.